STAND. COM. REP. NO. 89

Honolulu, Hawaii

RE: S.B. No. 587

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Energy and Intergovernmental Affairs and Commerce and Consumer Protection, to which was referred S.B. No. 587 entitled:

"A BILL FOR AN ACT RELATING TO RENEWABLE ENERGY,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Public Utilities Commission (PUC) to establish a streamlined grid-ready homes interconnection process;

(2) Authorize the use of the Hawaii electricity reliability surcharge for cost recovery of certain expenses of the Hawaii Electricity Reliability Administrator associated with the grid-ready homes interconnection process; and

(3) Require the Hawaii Electricity Reliability Administrator to report certain information regarding the grid-ready homes interconnection process to the PUC.

Your Committees received testimony in support of this measure from Tesla, Credence Projects LLC, Hawaii Solar Energy Association, Inter-Island Solar Supply, 350Hawaii, Sol-Ark, Alternate Energy Hawaii, Mālama Solar, Green Power Projects LLC, and five individuals.

Your Committees received testimony in opposition to this measure from Hawaiian Electric and Kauaʻi Island Utility Cooperative.

Your Committees received comments on this measure from the Department of Commerce and Consumer Affairs and Public Utilities Commission.

Your Committees find that the adoption of distributed energy resources, including paired solar energy storage and other renewable energy generation and storage technologies, is critical for the State to achieve its clean energy goals. The establishment of a streamlined grid-ready home interconnection process will encourage widespread adoption of customer-sited clean electrification technologies that will provide residential energy cost savings, homeowner resilience, and grid reliability to ratepayers, while contributing to Hawaii's clean energy future. According to testimony received by your Committees, electric vehicle charging technologies can also provide backup power to homes and other additive grid benefits.

Accordingly, your Committees have amended this measure by:

(1) Inserting language to require that the PUC's grid-ready home interconnection process include requirements for regulated electric utilities to update their interconnection rules by July 1, 2025, to allow for vehicle-to-grid capabilities that meet certain standards;

(2) Deleting language that would have required the PUC's interconnection process to allow licensed electricians to isolate electrical service at utility meters for meter socket adapter installation;

(3) Inserting an effective date of January 1, 2050, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Energy and Intergovernmental Affairs and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 587, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 587, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Energy and Intergovernmental Affairs and Commerce and Consumer Protection,

________________________________ JARRETT KEOHOKALOLE, Chair

________________________________ GLENN WAKAI, Chair